The letter emphasises the need for a retail rates corrector. Credit: D K Grove/Shutterstock.

More than 70 retail executives have called on UK Chancellor Rachel Reeves to implement a business rates reform.  

The executives, representing companies such as M&S, Primark, Ikea and Tesco, have signed a joint letter orchestrated by the British Retail Consortium, seeking a more equitable taxation system for the retail industry. 

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The letter emphasises the need for a retail rates corrector, proposing a 20% reduction in the business rates levied on retail properties.  

The executives argue that the current system unfairly burdens the retail sector, which contributes approximately 7.4%, or around £33bn ($43bn), of all business taxes in the UK. 

Business rates for the retail sector are 1.5 times higher than its share of the overall economy and account for 55% of pre-tax profits. 

The letter reads: “The businesses we lead make up the majority of these numbers. We look forward to working with you and the new government and believe that through retail’s scale and reach we can be an important partner in supporting investment and growth across the country.” 

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The executives expressed concern over the socio-economic consequences of the current tax system, noting that business rates have influenced the closure of two-thirds of the 6,000 stores shut down in the UK since 2019.

They argue that these rates are also hindering investments in employee training, store improvements and technological advancements that could boost productivity and economic growth. 

The retail bosses added: “We believe now is the time to level the playing field between industries with a retail adjustment to rates as this is the best way to achieve this manifesto commitment.”